1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sattari [20]
3 years ago
7

Critical analysis Q16 Suppose that the Federal Reserve purchases a bond for $100,000 from Reggie Rich, who deposits the proceeds

in the Manufacturer’s National Bank. Initially, as a result of this bond purchase, the money supply will by. Suppose the required reserve ratio is 25%. As the result of Rich’s deposit, Manufacturer’s Bank will be able to extendin additional loans. As a result of this purchase by the Fed, the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system is
Business
1 answer:
kkurt [141]3 years ago
3 0

Answer:

Explanation:

• Initially, As a result of the bond purchase, money supply will increase by $100000.

The reason for the increase in money supply by $100000 is because the federal reserve bought bond of $100000 from Riggie Rich. This is an expansionary policy which will lead to more money in supply.

• As a result of Rich's deposits, the bank will able to give $90000 more in additional loans.

The increase in the additional loans will be calculated by removing the reserve required ratio from the deposit.

= $100000 - (10% × $100000)

= $100000 - $10000

= $90000

• As a result of the purchase by the Federal reserve, the maximum increase in quantity of checkable deposits which could result throughtout the entire banking system will be $1000000.

The increase in checkable deposits will be the change in reserve multiplied by 1/RRR. This will be:

= $100000 x 1/10%

= $100000 × 1/0.1

= $100000 x 10

= $1000000

You might be interested in
Which job would require a license or certification? ambassador lobbyist high school teacher state senator
xz_007 [3.2K]
The correct answer is HIGH SCHOOL TEACHER.
A license or a certification is one of the major method that the government used to ensure that the right set of people are employed to do a particular job. Take teaching, nursing and doctoring for instance, these professionals render their services directly to the people and they have great impacts on the people they attending to, sometimes, the way they render their services to their customers determine whether these people will die or live. So, the government has to ensure that qualified and appropriate people are handling these jobs, that is why certificates and licences are needed to do these kinds of jobs.
5 0
3 years ago
Read 2 more answers
At a point when Robin Corporation has been in existence for six years, shareholder Ted transfers real estate (with an adjusted b
Zigmanuir [339]

Answer:

  • It appears that Ted wants to gain control per the requirements of section 351. However, Ted was short. Ted only has 79% of the stock ownership and not 80% or more. There for he does not have control. Since he does not have control, he is unable to qualify for the nontaxable transaction under section 351.

  • The Regulations provide that stock issued for property whose value is (equal/ relatively small/ relatively large) compared to the (fair market value of the assets/ value of the stock already owned) will not be treated as issued in return for property.

Explanation:

6 0
3 years ago
Marshall Manufacturing has recently revamped its promotional strategy. Marshall now utilizes a system that combines all the elem
nydimaria [60]

Marshall Manufacturing has adopted an integrated marketing communication system .

Option C

<u> Explanation: </u>

The main aim of an organisation is to have an effective communication channel to enhance their profit by adopting to an effective system.

For such effective system the organisation can make use of a model called Integrated marketing communication system this will organise and integrate all the promotional strategies of marketing and communicating to the end user.

This is a long process wherein the brand awareness will be created among the general customers at a low cost. This is also abbreviated as IMC which utilize numerous channels to communicate the campaign messages.

This campaign boost the efficiency of marketing activities that are used to convert strangers into prospects and prospects into customers.

7 0
3 years ago
A firm has a debt-to-equity ratio of 0.50 and debt equal to $35 million. The firm acquires new equipment with a 3-year operating
ipn [44]

Answer:

($35 million + $12 million) / $70 million = 0.6714

Explanation:

6 0
2 years ago
PLEASE HELP AHHH! IM BAD AT BUSINESS ;-;
tankabanditka [31]

Answer:same

Explanation:

7 0
3 years ago
Read 2 more answers
Other questions:
  • A random sample of voters found that 180 out of 320 people were in favor of a gas tax. election results found that 36,000 people
    15·2 answers
  • Direct materials used for the period cost $66,000; Direct labor cost $80,000; Applied overhead was $60,000; Beginning work in pr
    14·1 answer
  • Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the di
    7·1 answer
  • Which of the following is NOT one of the RESULTS of mass production? A) lower prices B)Product standardization C) increased trad
    6·1 answer
  • Colombia has an absolute advantage in producing coffee relative to the United States.
    5·1 answer
  • Adrian and Fran operate their computer tech support company "Best Techs," as an S corporation, file the appropriate incorporatio
    5·1 answer
  • in order to make college more affordable for students from families with fewer resources, a government has proposed allowing the
    5·1 answer
  • If product costs are misclassified as selling costs, the average cost per unit will be understated.a. Trueb. False
    6·1 answer
  • Juan is temporarily between jobs while searching for a new one. This type of short-term unemployment is called __________ unempl
    7·1 answer
  • On January 1, the Matthews Band pays $69,000 for sound equipment. The band estimates it will use this equipment for five years a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!